Channeling Stocks and Nervous Fund Managers
Whenever you have a period of higher volatility, fund managers look for places to hide.
Capital preservation suddenly becomes king when the market waters become turbulent.
But they need to buy stocks because they have a lot of clients money to invest in the market. So they put more money into safer stocks whose earnings and stock price are not going to be affected as much by the volatility.
So how does this affect the market? And how do we profit from frightened fund managers?
Well, suddenly stocks like Tyson and Campbells Soup become real attractive because they know in the worst case scenario, people will still buy chicken and soup. So they buy these stocks like crazy and suddenly they act like growth stocks.
This is why consumer staple stocks were the first sector to make new highs coming out of the most recent correction. And many broke out of bullish chart patterns.
A couple weeks ago we published a free web page as the definitive free guide to the channeling stock pattern.
And in our latest video lesson we show you how we make big profits in the flight to consumer staple stocks. By channeling the right stocks for the current market in superior, upward sloping channels.
Click above to see our latest free instructional video.
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